Southern Union Company Second Quarter Earnings Sneak Peek

Southern Union Company (NASDAQ:SUG) will unveil its latest earnings on Monday, August 1, 2011. Southern Union Company is engaged in the gathering, processing, transportation, storage and distribution of natural gas in the United States. It operates in three reportable segments: Transportation and Storage, Gathering and Processing, and Distribution.

Southern Union Company Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 40 cents per share, a decline of 4.8% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from 39 cents. For the year, analysts are projecting net income of $1.89 per share, a rise of 5.6% from last year.

Past Earnings Performance: The company beat estimates last quarter after falling short in the prior two. In the first quarter, the company reported profit of 51 cents per share versus a mean estimate of net income of 50 cents per share. In the fourth quarter of the last fiscal year, the company missed estimates by 3 cents.

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Wall St. Revenue Expectations: On average, analysts predict $530 million in revenue this quarter, a decline of 7.5% from the year ago quarter. Analysts are forecasting total revenue of $2.53 billion for the year, a rise of 1.6% from last year’s revenue of $2.49 billion.

Analyst Ratings: four out of seven analysts surveyed (57.1%) have a buy rating on Southern Union Company.. This is below the mean analyst rating of 10 competitors, which average 59.3% buy ratings.

Key Stats:

A year-over-year revenue decrease in the first quarter snaps a streak of three consecutive quarters of revenue increases. Revenue fell 1.6% in the first quarter and rose 11%in the fourth quarter of the last fiscal year, 11.2% in the third quarter of the last fiscal year and 26.5% in the second quarter of the last fiscal year.

The company has now seen net income rise in two straight quarters. In the first quarter, net income rose 7.4% from the year earlier. In the fourth quarter of the last fiscal year, the figure rose 5.2%.

Competitors to Watch: El Paso Corporation (NYSE:EP), Atlas Pipeline Partners, L.P. (NYSE:APL), DCP Midstream Partners, LP (NYSE:DPM), Enterprise Products Partners L.P. (NYSE:EPD), Atlas Pipeline Hldgs., L.P. (NYSE:AHD), Spectra Energy Partners, LP (NYSE:SEP), Kinder Morgan Inc (NYSE:KMI), Copano Energy, L.L.C. (NASDAQ:CPNO), TC Pipelines, LP (NASDAQ:TCLP), and Oneok Partners LP (NYSE:OKS).

Stock Price Performance: During April 29, 2011 to July 26, 2011, the stock price had risen $13.76 (46.2%) from $29.77 to $43.53. The stock price saw one of its best stretches over the last year between January 6, 2011 and January 18, 2011 when shares rose for eight-straight days, rising 7.4% (+$1.81) over that span. It saw one of its worst periods between August 17, 2010 and August 25, 2010 when shares fell for seven-straight days, falling 5% (-$1.15) over that span. Shares are up $19.69 (+82.6%) year to date.

(Source: Xignite Financials)

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